Why not do epc project: F+EPC means that the general contractor undertakes the financing, design, procurement and construction of the whole construction project, that is, a financing task is added on the basis of EPC. This is really a thoughtful service and a real "turnkey". Owners don't even have to raise funds and prepare start-up funds in the early stage. In fact, this model is a typical BT project, but during the period of 20 17-20 19, the contradiction between infrastructure construction demand and government revenue is more prominent, and the financing method is single. However, BT can't be completed, which coincides with the vigorous promotion of EPC, so everyone understands that turning the key and paying after obtaining it. Although we all know that the source of repayment is financial funds (such as being included in the budget, such as locking in the proceeds of land transfer), it is essentially an increase in government debt, but at least on the surface, it is not the case. If you see through it, you know everything, right?

However, a series of policies have made it impossible for government investment projects to implement "F+EPC", as follows:

1. It is forbidden for local governments to borrow money in the form of BT or in the name of entrusted construction. It is forbidden to build government investment projects by OEM, and it is forbidden to default on project funds. Opinions of the Central Committee of the Communist Party of China and the State Council on Preventing and Resolving Hidden Debt Risks of Local Governments (Zhong Fa [2018] No.27).

Why did you write your name so completely? Because I want to talk about this document No.27 here. In the past, when doing government investment projects, there were so-called "three sets" of credit enhancement, government commitment, financial guarantee and NPC resolution. The "accounts receivable" endorsed by the government has also led to many related financial means. Why are they popular in the market? Because in essence, government credit endorsement has effectively improved everyone's sense of security and gain. However, since Document 27, the situation has changed. The government's debt has been strictly controlled by the total amount and incremental supervision, and the government has also cut off new debts with platform companies. There is no government credit endorsement for the new investment and financing behavior of platform companies.

2. In addition to issuing local government bonds and transferring foreign debts to loans, local governments and their subordinate departments shall not provide guarantees for the debts of any unit or individual in any way;

3. The local government and its subordinate departments shall not promise to use the expected transfer income of reserved land as the source of debt repayment of the financing platform company. A financing platform company that only undertakes the construction or operation tasks of public welfare projects and mainly relies on financial funds to repay debts shall not take financial or state-owned assets as the source of debt repayment.

4. When local governments and their subordinate departments participate in social capital cooperation projects and set up venture capital guiding funds, industrial investment guiding funds and other funds, they shall not promise to buy back the investment principal of other investors, bear the loss of the investment principal of guitar investors, and shall not promise the minimum income to other investors.

5. Local governments and their subordinate departments, institutions and people's organizations shall not violate laws and regulations, and provide guarantees for financing of financing platform companies in any form such as letter of guarantee, letter of commitment and comfort letter.